By: Fraser S.B. No. 1398 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the authority of the governing body of a municipality 1-3 to change previously adopted zoning regulations. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 211.003, Local Government Code, is 1-6 amended by adding Subsection (d) to read as follows: 1-7 (d) Notwithstanding any other provision of this subchapter, 1-8 the governing body of a municipality may not change the zoning 1-9 classification of a property that results in a diminution of more 1-10 than 25 percent of the property's value unless: 1-11 (1) the owner of the property: 1-12 (A) waives any right to object to the proposed 1-13 change; or 1-14 (B) fails to file a written objection with the 1-15 governing body before the 90th day after the date the governing 1-16 body notifies the property owner of the proposed change; or 1-17 (2) the governing body compensates the property owner 1-18 for the diminution in value resulting from the change as determined 1-19 by: 1-20 (A) an agreement with the property owner; or 1-21 (B) a proceeding governed by Chapter 21, 1-22 Property Code. 1-23 SECTION 2. Subchapter A, Chapter 21, Property Code, is 1-24 amended by amending Section 21.003 and adding Section 21.004 to 1-25 read as follows: 2-1 Sec. 21.003. DISTRICT COURT AUTHORITY. A district court may 2-2 determine all issues, including the authority to condemn property 2-3 and the assessment of damages, in any suit filed under this chapter 2-4 and any suit filed: 2-5 (1) in which this state, a political subdivision of 2-6 this state, a person, an association of persons, or a corporation 2-7 is a party; and 2-8 (2) that involves a claim for property or for damages 2-9 to property occupied by the party under the party's eminent domain 2-10 authority or for an injunction to prevent the party from entering 2-11 or using the property under the party's eminent domain authority. 2-12 Sec. 21.004. PROCEEDINGS REGARDING CHANGE OF ZONING 2-13 CLASSIFICATION. A proceeding filed under this chapter for the 2-14 purpose of determining the diminution of a property's value under 2-15 Section 211.003(d), Local Government Code, is a condemnation or 2-16 eminent domain proceeding under this chapter for the sole purpose 2-17 of satisfying the procedures required by this chapter. In such 2-18 proceedings, the condemnor or acquiring entity is the municipality, 2-19 the condemned property is the property for which the zoning is to 2-20 be reclassified, and the condemnation is the change in the 2-21 property's zoning classification. 2-22 SECTION 3. Subsection (a), Section 21.0111, Property Code, 2-23 is amended to read as follows: 2-24 (a) A governmental entity with eminent domain authority that 2-25 wants to acquire real property for a public use or change a 2-26 property's zoning classification shall disclose to the property 3-1 owner at the time an offer to purchase or otherwise compensate is 3-2 made any and all existing appraisal reports produced or acquired by 3-3 the governmental entity relating specifically to the owner's 3-4 property and used in determining the final valuation offer. 3-5 SECTION 4. Section 21.012, Property Code, is amended to read 3-6 as follows: 3-7 Sec. 21.012. CONDEMNATION PETITION. (a) If the United 3-8 States, this state, a political subdivision of this state, a 3-9 corporation with eminent domain authority, or an irrigation, water 3-10 improvement, or water power control district created by law wants 3-11 to acquire real property for public use or change a property's 3-12 zoning classification but is unable to agree with the owner of the 3-13 property on the amount of damages, the condemning entity may begin 3-14 a condemnation proceeding by filing a petition in the proper court. 3-15 (b) The petition must: 3-16 (1) describe the property to be condemned or to be 3-17 reclassified under a different zoning classification; 3-18 (2) state the purpose for which the entity intends to 3-19 use the property or for which the property's zoning is to be 3-20 changed; 3-21 (3) state the name of the owner of the property if the 3-22 owner is known; and 3-23 (4) state that the entity and the property owner are 3-24 unable to agree on the damages. 3-25 SECTION 5. Subsection (a), Section 21.021, Property Code, is 3-26 amended to read as follows: 4-1 (a) After the special commissioners have made an award in a 4-2 condemnation proceeding, except as provided by Subsection (c) of 4-3 this section, the condemnor may take possession of the condemned 4-4 property or change the zoning classification of the property 4-5 pending the results of further litigation if the condemnor: 4-6 (1) pays to the property owner the amount of damages 4-7 and costs awarded by the special commissioners or deposits that 4-8 amount of money with the court subject to the order of the property 4-9 owner; 4-10 (2) deposits with the court either the amount of money 4-11 awarded by the special commissioners as damages or a surety bond in 4-12 the same amount issued by a surety company qualified to do business 4-13 in this state, conditioned to secure the payment of an award of 4-14 damages by the court in excess of the award of the special 4-15 commissioners; and 4-16 (3) executes a bond that has two or more good and 4-17 solvent sureties approved by the judge of the court in which the 4-18 proceeding is pending and conditioned to secure the payment of 4-19 additional costs that may be awarded to the property owner by the 4-20 trial court or on appeal. 4-21 SECTION 6. This Act takes effect September 1, 2001.